Education fee planning in Singapore
Providing children with a good start in life is usually a top priority for parents. As with all savings goals, the earlier you start the better.
The first step is to decide what your goal is, and how long you have to achieve it. Do you want to cover the cost of university fees, help them onto the property ladder or support in another way?
There are many tax-efficient investment options that we can look at to facilitate this. We can help you find a solution that is right for your specific needs.
Investing on a regular basis is an easier way to build up a substantial pot of money for your child. The key benefit of a regular savings plan is what’s called ‘dollar cost averaging’. With regular savings, fluctuating markets allow investors to purchase more units when the prices are low so when the investment regains lost ground, the units will be worth much more.
Investing for a child also means you have a lot of time. Starting early ensures you will benefit from the effects of compound interest.
Offshore investment bonds
An offshore investment bond is a form of collective investment that uses an insurance policy as a ‘wrapper’ for the underlying assets. This can be an effective way to invest for children due to its associated tax benefits.
To start saving for your child’s future, speak to one of our financial planners today.
The value of investments can go down as well as up and you may not recover the amount of your original investment